Most analysts maintained their bullish investment recommendation for Reliance Industries Ltd. after the third quarter as its digital services arm clocked higher sales.
Earnings before interest and taxes of Reliance Retail Ltd. rose 8.9% year-on-year and also increased sequentially. The retail unit o India's largest company by market value added more stores and as people continue to order groceries from its online platform, JioMart, well after lockdown restrictions were curbed.
Jio Platforms Ltd., the holding company for digital ventures and the telecom unit, saw profit rise 15.5%, helped by Jio's stable market share and an increase in average revenue per user. The Mukesh Ambani-owned conglomerate discontinued providing results for Reliance Jio Infocomm Ltd.
Reliance Industries also didn't provide gross refining margin for the third quarter as it reorganised the refining and petrochemicals into the oil-to-chemicals business. It reported an impairment of Rs 15,691 crore on its shale gas investments due to the market environment, reduction in activity by the operator and recent operational performance.
Shares of Reliance Industries ended 5.3% lower at Rs 1,941 - the most in a single day since November 2, 2020. The stock fell for the second straight day. Based on the 12-month Bloomberg consensus price target, the stock has a return potential of 12.2%. Of the 36 analysts tracking Reliance Industries, 24 have a ‘buy' rating, seven suggest a ‘hold' and five recommend a ‘sell'.
Here's what analysts have to say about Reliance Industries' third-quarter results...
